Being contacted by someone who wants to lease your California mineral rights can be an exciting moment. However, before you enter into a discussion with that individual or company, there are several things you need to know.
If you have recently considered investing in energy resources in the state of California, chances are you have heard about the variety of pending benefits you may enjoy. You have probably also learned a lot about the risks involved, as well as the types of energy resources you can choose to invest in. However, did you know that you can invest in resources such as oil and gas in more than one way? Deciding which option is the most beneficial for you depends on your needs, the time you have and the outcome you desire.
You probably do not want to go into a deal with an energy company in California assuming that some kind of dispute is bound to arise. It is easier to believe that the contract you sign is going to create a stable and lucrative relationship. It may be better to prepare through a dispute resolution clause in your contract, but setting one method in stone could backfire.
If you run a business in the oil and gas industry, there are a wide variety of stressors you may come across and all sorts of problems you face on a daily basis. However, it is very important to approach oil and gas transactions correctly, since the way these transactions are handled could have a huge impact on the future of your business. Our law firm is very familiar with the numerous questions, concerns, and considerations that relate to these transactions and we know how crucial it is for business owners to protect themselves during a transaction.
If you are ever approached by a representative of a local gas and oil producer in California, you may find yourself wondering if it is a good idea for you to enter into a lease for your property’s mineral rights. Before you sign one, you should consider the ways it can affect your rights, finances and life.
If you have been approached to invest in an oil and gas venture in California, it is well worth it to completely check it out before signing anything or handing over any money. A legitimate business opportunity offered by an upstanding company should be easy to check out, and the company should have no issues with your inquires. Red flags start to pop up when you get push back or hesitation during your efforts to verify the investment opportunity.
Oil and gas companies cannot start drilling and extracting mineral oil from your property in California until you sign a lease or sell the property. You may have your mind on what you plan to do with the money once it starts rolling in, but you need to stay focused on the lease agreement. Before you sign your name on anything, make sure you understand what the lease requires so you do not make any mistakes that go against your interests.
One of the best ways to create effective sales agreements in the oil and gas industry is to negotiate carefully and strategically. At Ehrlich & Pledger Law, LLP, we have helped many people in California formulate contracts that are concise and thorough.
When you sign a lease agreement and an oil and gas extraction company begins drilling on your land in California, you expect your percentage of the royalties to be consistent with sales. However, according to ProPublica, many large companies have developed ways to withhold money that rightfully belongs to landowners, and they are often successful because of a lack of disclosure laws and accountability measures.
A joint operating agreement is something commonly used in the oil and gas industries in California. If you are interested in getting into these industries, then you have likely heard of a JOA. The Oil & Gas Financial Journal explains that this type of agreement is part of establishing a joint venture. There is no one set format for a JOA that you have to use, but there are some common items typically included in all JOAs.